tv Worldwide Exchange CNBC May 4, 2012 4:00am-6:00am EDT
it goes it is worldwide exchain. these are the headlines. in the u.s., the april jobs report is front it and shr. companies likely hired more workers, but not enough to make a dent in the unemployment rate. and american talks wind down in beijing with mixed messages. hillary clinton says ties have never been stronger, while
remere wen warns differences need to be respected. >> and in greece, the page tarties are expected to be hit hard at the polls among anger over the country's austerity drive. >> and facebook sets the price range for its upcoming ipo and try to convince investors to like the deal. welcome to "worldwide exchange." the eurozone economy is worsening quite significantly over the month of april. we're looking at the final services pmi reading of 46.9 as opposed to the flash reading of 47.9. so you're looking at the final
services pmi data seeing its biggest down grade from the flash since october of 2008. final services employment also quite a bit lower than what we've seen before. the lowest since february of 2010. composite pmi weaker than anticipated and the final composite new business also weaker than anticipated. let's get stuck into the show. our first guest is james berman. the weakening data, it seems like there has been a trend as of late. does it worry you? >> it's quite interesting. i think euro land data is forward looking still.
we are getting much better pmi numbers out of china and the u.s., the big picture we should all have. we all knew that there were real problems with the periphery and there would have to be material bailouts. on the other hand, what we're now seeing is contagion to the core and that is much more troublesome. on the other hand within the european investment sector, there are great companies like publicists like vw, people think why on earth would you want to buy a car company. i say if you look at the profitability, you look at the cash flow, the current valuations, a lot of up side potential. >> aboif we are looking at the contagion, things are getting worse. >> i do think that we'll face another test of the resolve of policymakers within euro land. ? james, you're with us for the
full hour. coming up, though, here on today's program, we'll be hearing from the coe of bnp and what he says about the possible change in leadership in france. election results also coming through in the uk. who is going to be the next london mayor and what does the city have to say about it? and stay tuned to hear from the ceo of brightcove, as well. why have shares had a staggering run since going public. stay with us to find out. >> take a look at the asian session. quite a bit of caution as you can see here. the fact that there were whisperings on wall street that the jobs figure released later today could be lower than the consensus forecast of somewhere around 165,000, that sent shivers to the asian session not to mention the fact that we have mixed data coming out of the u.s. services pmi in china looking softer, too,s as well. we did have a couple of bright
spots such as the taiwan market. but really the big focus is on nonpa nonfarm payrolls and the critical a dialogue in beijing. and we'll be getting the final communique and it certainly remains to be seen how much of the dissident issue will muddy the waters given we have seen a few significant headlines. we've got flashes coming out from the chinese side saying they will raises foreign ownership limit for brokerages to 49% from the current levels of 33%. the companies can trade commodity and financial futures, as well. so big implications.imp and china will start negotiating ways to reform export credit financing from the summer, as well well. and another issue we need to focus on are the dividend issue of say the owned companies. remember how much they give back to the state is going to be
quite critical in fixing some of the underfunded social welfare programs as well as pensions. and this is one of the reasons why it's been so tough to get chinese consumers to spend. >> you're talking about what's taking place in your part of the world. let me show you my part of the box. stoxx 600 a lower, you can see by and large the vast majority trading in negative territory. off by just around 0.6%. so weaker than anticipated set of data hit thissing the wires. eurozone services pmi data just wrapping up a week where we've seen quite a bit of worsening data hitting the wires. employment being one of the big ones to have focused in on. ecb deciding not to do anything about the weakness, keeping steady on rates. the ftse 100 lower this morning by half a percentage point.
rbs a standout gainer, 2.7% higher. rbs saying they are on a recovery path now, their first quarter operating profit coming in nicely above forecasts at 1.2 billion pound sterling. also hearing the uk have no desire to sell rbs at the current price. remember the government paid just shy of 50 pence per share. but they are on track to repay the bulk of the 75 billion it that the uk government inverted into the rbs. so a little bit of an outperformer in today's market trade. xetra dax lower by 0.6%. the cac off by 0.8% and the ib eventibex just regaining what it had lost. with the elections, it could get even more interesting next week. the ten year bund yielding 1.6%, so pushing a little bit higher.
successful bond suctions yesterday, so wrapping up another week with a successful bond auction, so many saying the impact not being felt on the debt markets right how. the ten year spanish bond yielding 5.7% and in italy the yield pushing lower. an inverse relation. and let me show you what's taking on the forex rates. you've got the euro dollar flat to a little bit lower. we did see the euro bouncing up to intercession highs after mr. draghi spoke at yesterday's press conference basically indicating that he seemingly was a little bit less dovish than expected. which means that they won't be cutting rates at any point in the near future. dollar-yen flat, aussie dollar against the u.s. relatively flat. and sterling flat, as well, against the u.s. dollar.
>> and the fourth extra strategic and economic dialogue is wrapping up with some mixed messages. wen has asked hillary clinton to respect the differences between the two sides, but overall when stressed that the two day dialogue has been high productive. earlier clinton told hu jintao that washington's relationship with china has never been stronger. at the center of the cross talk, chen guangcheng, the saga is creating a political headache for both the obama administration in an election year and also beijing heading into a leadership transition, as well. emily chan has been following this development out of beijing. we're just about an hour away from getting that final communique. do you think that the communique will in fact deliver in terms of
expectations building on this forum? >> well, it's going to be the last time that these major leaders meet for the fourth strategic and economic dialogue. we are winding up here a two day conference. and we got comments from a senior u.s. official saying that china is willing to make soes pay market rate dividends. this is all part of economic reforms in order to reduce the roll of soes. raising their dividend so that payment is similar to those international listed companies. they've also agreed to let foreign investors own 49% of domestic securities joint ventures and those foreign joint br ranlgs will be allowed to trade commodities and financial futures. also in moves to strengthen the capital markets. the shanghai com positive the closing higher by half a% today all on policy hopes. so these measures may have something to do with why the composite traded higher today.
on the chinese part, we will heard from the vice finance minister saying china would be more active in promoting market openness and prioritizing asian countries in opening up economic policy. and they expect imports to total $8 trillion over the next five years. so things have been quite positive, geithner and clinton basically coming out after meetings saying that relation relations have been the strongest that they have ever been and geithner saying the broad direction of economic reforms has been promising. just quickly another big story we've been following of course is dissident chen guangcheng. earlier he said he was in great danger and late last night, he phoned into a u.s. congressional hearing from his beijing hospital as he continues to seek asylum in the united states. foreign ministry today in
response says chen can apply to study an abroad, he can apply through normal channels to the relevant departments in accordance with law, you but of course he is currently being treated in hospital. >> thank you so much for that. emily, stay right will because we'd like you to take part in this will discussion, we have jacob finch joining us. jacob, emily was taking us through the key headline stories coming out of the sned. given the saga involving the dissident, have we been tempering our expectations some the past week, we've been seeing pretty solid headlines coming out from china, they've been rolling out pro market measures, they're talking about ways to get some of the state owned enterprises to hand back some of their profits back to the state. it looks like things are progressing a lot better than expected.
>> this is a particularly complicated moment in u.s./china relations. and this is a particular moment in which the world is facing a unique set of challenges. so the stakes are significant. but the principles underpinning the dialogue are fundamentally about engagement, so in a sense, this couldn't come at a better time. looking forward, i think that there is little question that interests are aligned around main stataining stability. from a business perspective, we think that the only bet is that u.s. and china will figure out, find a way to muddle through. fundamentally the alternative is too grim. >> what's interesting is that
there is a common goal shared between the united states and china, which is that it helps mutually. it's mutually beneficial that china reform its economy and it also benefits the united states. what's interesting is that this past week despite the saga involvingdissident, they're also talking about getting state owned to, but enforcement has a been a krit problem because state owned companies haven't been doing what they're supposed to do. how do you get them to do what they say they will do? >> well, i think enforcement is an issue across the board frankly. you have high level meetings with promises of certain firms to perform and times passes and
how often these reforms get implemented is a question that's also confounded by a poest host of issues. the fact that these discussions are happening is the important thing. it is probably an iterative process and i'm as the phrase go, i'm cautiously optimistic that this will lead to positive results. >> this is emily coming to you from beijing now. i want to ask you about soes and the economic reforms with china saying that they're willing to make soes pay market rate dividends, a lot listed in hong kong, is the market going to be reacting to this news sha?
what is the impact? >> as i say, i think it's probably a tempered response. ultimately the devil will be in the details and i suspect the market will react when ultimately we see these reforms actually take place. now, as far as the broader discussion is concerned, i think that general feedback suggest the discussions have been positive and received well. so, again, i think that market response has to be relatively positive, though i don't think there was -- >> jacob, it's louisa. sorry, i'm going to jump in because i'm dying to ask you whether or not this all means that china net/net will come out
of the bilateral talks looking once again like a wirn. we've seen in the past that there was a lot of pressure for china to have its currency appreciate and that hasn't happened. they very much kept to their own in that regard and we've seen a whole lot of other emerging market currencies. china coming out on top often is this the same scenario? >> i think there has been appreciation of the chinese yuan over the past several years. if fact i think geithner today made reference to that and i think that's something that's been on the agenda for years. again, i think a general view is that's moving in the right direction. whether it's moving fast must have, certainly there will be voices that will be critical. but i think that what we have to
be careful of is these issues being hijacked by domestic politics frankly on both sides. it is an incredibly complicated moment as i said if the election -- this being the election year, changes in leadership on both sides. so i think fundamentally the result is positive. i think we have to be careful that domestic politics don't hijack he's issues and politicize them in a negative way. >> and we're looking out for that final communique. thank you so much for that, jacob. and emily, we'll check in with you in the next hour. for more analysis, do head to our website at cnbc.com hedge fund manager. we're expecting a joint
statement from beijing in less than an hour. we'll break that communique for you as soon as it happens and we'll offer you more analysis with emily chan along with chris johnson. that is in the second hour of this show. >> and coming up here on "worldwide exchange," we're live in paris as sarkozy gains ground against hollande ahead of this weekend's elections. the challenger though still holding on to a solid lead. o a solid lead. [ male announcer ] the inspiring story
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welcome back. it's going to get very interesting over the weekend. the french election on sunday really gaining ground with anticipation of who is going to come out on top. of course what we saw in the latest polls, 47% for sarkozy and that means that he's slightly behind the main contender, the leader of the socialist party, mr. hollande. but sarkozy the incumbent now fighting to who hold on to his seat. he's looking to put a tax on minimum corporate profits and hoping to raise approximately 3 billion euros. on top of that, one of the other main points are the new immigration controls, as well.
tom mackenzie takes a look at some of his policies. >> sarkozy has the backing of merkel, but he insists this is an election for the french alone to decide. the president is planning what he calls a new tax on minimum profits. so far the rate and conditions are not clear. but he claims he can raise up to 3 billion euros every year. he's resorted to talking tough on trade and promising new immigration controls. he has also trumpeted his claims to have saved france from falling victim to the eurozone crisis. >> translator: ask about what's happening today to the italian retirees, to imagine how they feel, the spanish unemployed, who have so little chance to find work because the level of unemployment is three times higher than in france.
>> of course it was a very closely watched tv debate that took place on wednesday evening. a lot of analysis after that putting the two contenders very much neck on neck. the latest polls for the second round show that 53% of voters would be voting for francois hollande. what they're look to do is put a 45% tax on 150,000 euro pay or above and 57% 75% tax on 100,00 above. taxing the very wealthy. and also clamping down on bonuses. let's take a closer look which policies they're supporting. >> french social list party candidate hollande is leading the race for the presidency. a man who has said his real opponent is not sarkozy, but the world of finance.
if laeblgted, hollande has promised to clamp down on bonuses, ramp up income tax to 45% on earnings of more than 150,000 euros, and impose a 75% tax rate for those earning over 1 million euros. >> stefane is in paris ahead of sunday's election. it's heating up. no other way to put it. it will be a super interesting next couple days. >> yeah, still a bit of suspense even if it didn't look like sarkozy can make it on sunday. he's closing the gap but it's not enough to be in position to win will this election. you mentioned the last sur surv. it was conducted after the tv debate. but it was also conducted before the centrist leader decided to
endorse hollande which is definitely not good news for sarkozy. let's try to look a bit forward. what socialist victory would mean for the french economy. i've asked him if the outcold front election would change a lot to the french economy. >> both candidates in fact are very much committed to take care and to tackle public deficidefi. and on top of that in different ways they are very much willing to give a hand to the economy with some growth might be differences. >> clearly the sentiment on the ground has change changed a lot since the beginning of the campaign. six months ago, business leaders were quite worried about a possible victory of hollande, some worried that france could be downgraded right after the election. today none of the business
leadings are expecting an immediate downgrade of the french credit rating. in the banking sector also, if you you remember, francois wanted to split the retail and investment banking activities. now they're not expecting the banks to be broken up, it looks like fran squa has softened its position and now they're not concerned about a possible crisis right after the election. and there is also a position in which the business community has changed. francois hollande would like to solve then the fiscal pact with germany. when he made will this months ago, the business community was really worried about hollande's intentions, but some of them today are not wondering if he's not right, and we need incentive regarding economic growth and perhaps hollande's plan to try to influence the german position might not be wrong after all. we'll have the result of course sunday evening after months of
build up. >> i know, terribly sxigt aarrid of course you'll be there. james is still with us. keep your e-mails and tweets coming through. but james, i want to get your reaction to what you think a potential leadership change could mean not just for france, but also for european markets. >> i don't worry about the prospects of mr. hollande being in charge. marine le pen said she will vote blank if at all. so will this is a much more interesting election from purely macroeconomic points of view. i think mr. hollande makes very good points. austerity is an extremely damaging philosophy. we absolutely immediate to see
growth. >> it seems on the face of things that it could get very messy. >> it's very clear that the euro land experiment has not been cured by the scheduling of the greek debt position. we'll have the greek elections and they say we don't like what you're doing to us, and i still favor the international exporter, intern making at earnings. thinking about what's going on in china. >> james, thank you very much. coming up right here on "worldwide exchange," the greeks are also heading to the polls. major parties are seen taking a big hit following widespread public discontent over painful
austerity measures. we have the details. in here, great food demands a great presentation. so at&t showed corporate caterers how to better collaborate by using a mobile solution, in a whole new way. using real-time photo sharing abilities, they can create and maintain high standards, from kitchen to table. this technology allows us to collaborate with our drivers to make a better experience for our customers.
enough to make a dent in the unemployment rate. >> high level talks wind down in beijing with mixed messages. u.s. secretary of state hillary clinton says ties haven't been stronger but wen says differences have to be respected. >> and sarkozy narrowing the gap with hollande. in greece, the major part ters are expected to be hit hard amid anger over the country's austerity drive. >> facebook sets the price range for its upcoming ipo and gets respect to try to convince investors to like the deal. >> let's talk about the greek elections. and this is pretty messy so bear with me. we've tried to simplify it for you. we're looking at a chart of voting intentions. and what you have essentially around 32 parties are registered in it weekend's elections.
mine are expected to make it in to parliament. and starting with the new democracy party, they voted against the first bailout. the question is would we have to renegotiate part of the deal that's already been struck if these parties were to come to pow power. of course the other main contender is led by the social list leader. and you have a number of the smaller parties that probably will get in to it a coalition and many of the sideliners are against the deal that has been set so far from greece and that's where it could get interesting.
why is it that it's so important to look at the psi deal that's been struck and at what the smaller groups could potentially cause if they are voted in? if the greek government debt is restructured once again, it probably isn't going to be because of the deal and the reason is simply down to the amount of debt held by the private sector. is if you don't have private sector involvement, means that it's probably not going to make that much of a difference. so questions about whether or not they have to renegotiate part of the deal. the party that gets the most votes of course will add an additional 50 seats. the question is how do they implement the measures and also whether the eu imf could get cold feet and pull out again. but speaking earlier, the
president of the athens chamber of commerce what he expected from the election outcome. >> what we need monday morning is a strong government, a government that will be over 50% representative as far as the greek electorate is concerned. and even those smaller parties that will enter the parliament need to provide cooperation. i would definitely degree with renegotiating certain parts, but those that will enhance growth within our economic model. >> our next sgguest says the election will have little impact. and joining us now to explain why, hi, why is it that you think that there will be little real market impact and why nezly the pie ral this summer?
>> if you go back to the beginning of the year, the germans and the ecb and eurozone have put in lots of measures to take greece out of the equation. i don't think the greeks will commit suicide by going against with what they have agreed with the ecb. er. >> smaller parties are calling for this. calling for a restructure. it might be a given versus something that we choose or not choose. >> but i think once the dust settles and once they are in power, the coalition will realize that the debt of what they face. and i suspect they will back down. because given the choice of dying today and dying tomorrow, i think they'll choose to die tomorrow. >> i think it's interesting we've not had a ghod that has
ever lived lieu will sort of reportion organization organization >> i think that james makes a good point. when your country is literally at the brink and you know that the conditions will only get worse before they get better, that will take a long time. why not just bring up the old issue of brokening out of the eurozone and going back to the drachma? >> i think the pain will be unbearable. i think the fact that they would do it is very unlikely. i think they will muddle their way through. >> but what does muddling the
way lieu mean? if you take a look at the asian experience back in the late '90s, a lot of countries did get bailed out by theby monetary fu, but there was a huge difference. we didn't have problems with growth or unemployment, it's just that states and companies way overspent their way. so once they fixed their system, cleaned up some of the bad company, ultimately growth came right back and a lot of these countries from all the way paid their debt back in a matter of few years. so ultimately how can we get out of this dark hole? >> that's a fair point. if you look for a real solution, clearly the best thing would be for them to sort out and sort their own mess out, but would they want to, that's a different issue. i think they careless son that they did in january because they have reasonable k6d that a default or an exit of greece alone would be manageable.
the point this that you made on the reconstitution of the loan holders does have some bearing. but i think my experience of the ecb, this they'll find some other trick to hide those losses somewhere. >> you look at greece and spain, two very different countries, very different scenarios and different issues, as well. but i was speaking to someone the other day on european closing bell saying that he thinks we should just go ahead and save two years and restructure spanish debt up front and that that could save us a lot of time and heartache in the long end. >> think spain is a very different issue. it's a very big problem. it's been building up over a period of time. and i think the fact that the spanish bank minister decided to kind of go back on his word on the fiscal compact i think really started will this downward spiral for spain. and now i think it looks very, very tricky for help. >> i absolutely agree.
the spanish economy is huge and it's very complex. and after one of the reasons the greeks don't want to leave the euro is that they have a very significant dependency on eu finance. and to say thanks but no thanks is very painful. spanish economy on the other hand absolutely could say we're going to do it this ourselves, we want to move on. and that would be really very bad. >> and coming back to the comment about the greek election won't have a material impact on the economy, how long do you think the markets can ignore that? we still continue to see an equity market correction or increase, a rally. >> i think that you had the beginning of the year the ltro rally, that's kind of faded away. reality has creeped in. and i believe that we'll have a very rough summer. because there's very few things outside of more liquidity being injected into the system that could potentially save this.
because more austerity is clearly causing a lot of problems politically. but just going out for growth means how do you finance it and that could have other triggers like the s&p or moody's downgrades and just the market might freak out. >> okay. thank you very much. we have to leave it here. james stays with us. make sure that you tune in on monday because cnbc will be live in athens bringing you all of the latest from the greek capital on those elections. and speaking of elections in london here, the ballots are closed now and the vote is being counted on the mayoral elections across the uk. citizens also voting on their local council elects. but how is the ruling coalition expected to fair? julia chatter sly has the lates. >> thanks very much. it looks like a tough day for the conservative party.
not unexpected seeing that weakening for the current government at this midway point particularly given the austerity measures that they're having to every ple chimplement. and bear in mind only 30% actually go to polls and analysts saying they don't expect that the result today will impact current economic policy. for now we do a wait the votes on the london elections. conservatives versus the labor side. for now i'm joined by angela knight. a former conservative mp. thank you for braving the cold. the commentary this morning discussing the idea of boris johnson as the next leader. >> i'm not sur thesure there's vacancy, but i do hope boris has
won london. he has the representation which outside the uk they say, yes, that being looks good. after all, we're a very big international financial center here and so it's important that we send out the right messages about investment, the right messages will wanting financial services, the right message about being open for employment. so i look forward to the result and let's see what happens. >> ken livingston said that if he won, he had plan b for the economy. do you think it's time for a plan b given we're at a critical junction? >> we are at a critical juncture and we need to manage the two things of gripping tightly public expenditure and getting an economic recovery. it's not an easy combination and people do not like it when you have to say no. but sometimes no is essential.
and if we're going to properly recover as an economy, i'm afraid we do have to be careful how we spend. >> what message do you think voters are giving to the current coalition from these local elections today? >> again we feed to wait for the results i'm afraid and i've been a local counselor, as well, and of course worked in the engineering industry. so i've done a number of jobs if i may say in my life. local elections are important, local elections are vital for the areas in which people live and local elections in the midterm often favor those in opposition. and again, as i say, if you don't like it, you say i don't like tough. but frankly deep down in our hearts of hearts, we know that you can't carry on borrowing and spending. we all know that we have to be firm about getting the proper recovery, get the economy on the motor and part of that is about taking difficult decisions. >> so ultimately you don't believe that this will have any influence on the government's
current economic policy? >> the government has to listen to the electorate and talk about why it's necessary to take difficult decisions. but if we say, no, we'll just spend money, people think that might be nice, but then we're borrowing again. and look at the credibility that we'll lose. and if you lose credibility as a country, then you start to get on the slide. we've had so many examples of that in europe. and i don't just mean greece and i don't just mean portugal. look at spain, look at italy. we can't follow it that. and i think that we all know we can not go down that route and i'm afraid you have to do tough economic decisions. >> thanks. we'll leave it there. that was angela knight. british bankers association. back to you. just to let you know that another arrest has rocked the founding family behind will one of the world's largest real estate developers.
hong kong says the former chairman was arrested thursday night by the city's anti-graft agency in relation to a bribery probe. and he is been released on bail and tracey chang has been following the details. >> this piece of news has widened the investigation which includes the previous arrests of walter's brothers as well as a former hong kong official. the eldest brother of the family was ousted as chairman back in 2008, he applied to the high court on prevent the board from removing him alleging that his brothers opposed his inquiries in into the way the country awarded construction contracts. t bribery focuses on payments totally more than $2.5 million to hong kong's number two government official before and after his time in the office. so far all parties involved have denied any wrongdoing.
of course shares ended down 1.8%, the stock has lost more than 15% about of its value since the investigation began back in march. back over to you. >> thank you so much for that. and that would he louisa, international implications, as well. it's fascinating because i heard that there is also a huge project over your way. >> yes, indeed. and i wouldn't be doing "worldwide exchange" justice if i didn't mention this and highlight that that's reverberating throughout london, as well. they entered in to an agreement with a property developer for 50% stake in a carpark in local areas in west london which it plans to turn into an 808 home development. local residents have now raised concerns about the viability of the project. recently having been approved by boris johnson, the mayor. the property developer says the project will go ahead as
welcome back. a real pleasure for me to be hosting today alongside both of you and jackie is joining us now to tell us from the u.s. what on anticipate. >> good morning. happy friday. facebook has unveiled more details about its upcoming ipo including the price range for the shares. the company has posted material for its road show in a video online. kayla tausche has more. >> facebook's final filing for its long a wait public offering is finally here offering not only a glimpse into its internal financials, but also how it will value itself as a public company. thele-year-old social network plans to offer 337 million shares, 180 million of which will be newly issued shares. the rest from early investors. and the expected price range is $28 on $35 per share. that would raise $5.6 billion for facebook proceeds. and 10.6 billion in the deal
overall. implied valuation between $85 million and a $96 million is lower than previous expectations, but does factor in numbers from the first quarter. but in the most recent filing, facebook acknowledges a potential decline in user growth if only because its current user base is so large already. starting next week, facebook will go full-court press across the u.s. in a ten day road show to court investors. it kicks off in new york and will end in california ahead of its public trading debut on may 18th. >> let's get the a final thought from our guest host. looking at a slightly lower valuation than expecting on wall street. road show going to kick off soon. tell me your expectations. >> i think there's a reasonable chance it will come in well. my strategic concerns are that social networking may well now be cresting and about to decline and i still don't really
understand how facebook will monetize contrast to google which has been very successful. >> putting aside the facebook story for a moment, i see that you're maintaining your arrest gets on the s&p 500 and ftse 100. 1470, for the ftse, 6100. >> and 4950 for the cnbc global index. i actually believe that we're seeing good earnings coming out of the u.s. and uk. so the real issue is what should you pay for it them. you should be prepared to pay reasonable trend multiple. >> so even though we're off to a similar start to the year as we were last year, the end of the year will be different? >> last year we had real problems in terms of the crisis for japan. didn't have that this year. central bankers are much more front footed this year.
>> james, we're getting plenty of headlines from china, especially on the fact that they are going to raise the foreign ownership limit. do you think there could be investment implications? >> looking at the lead surveys it's clear that production is going great guns. domestic production is in slept shape. it's in excellent shape. it's a challenging one because if one would see the yuan go up materially, the costs to companies like apple would be materially higher and after all, there would then be the question as to how much chinese want to if you said the u.s. deficit through purchase of the u.s. t bonds. so i think policy at the highest level is absolutely consistent
with better markets from here. >> do you think that investors especially the top hedge fund managers such as jim chanos have been too -- >> i think the strongest are made when they climb worry. so i'm glad because it means there should be a firm foundation for future progress. >> commodity prices falling. is this trend going to continue? >> i actually think it is. we soo likely see oil settle back down to around 95 bucks a barrel. i do think there is still the capacity to for a squeeze in base metals. demand i expect will pick up in the years ahead. >> all right. we'll have to leave it there. james, thanks so much. great to have you with us this
morning. louisa. >> just taking a look at how the european markets are fairing briefly two hours in to trade now, we're looking at markets being slightly lower across the board. ibex just higher by right around a percentage point or so. so holding on to what we were looking at an hour ago. >> and coming up, have the april showers rained on the u.s. jobs report or is hiring picked up as analysts expect in we'll zoom in on the april nonfarm payroll report. report. [ male announcer ] the inspiring story of how a shipping giant can befriend a forest may seem like the stuff of fairy tales. but if you take away the faces on the trees... take away the pixie dust. take away the singing animals, and the storybook narrator...
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in the united states, the april jobs report is front and center. companies likely hired more workers, but not enough to make a dent in the unemployment rate. >> high level talks wind down with mixed messages. hillary clinton says ties have never been stronger while wen warns differences need to be respected. >> and voting time in europe. france set to elect a president with sarkozy narrowing the gap
with hollande. and then in greece, the major parties expected to be hit hard at the polls. >> facebook gets ready to try to convince investors to like the ipo deal. >> retail sales figures rising for the month of march. we're seeing them rise by 0.3% on the month. forecast was for a contraction. so both figures coming in quite pleasing. this is a stark con tres to a lot of the other data hitting our wires specially over the last week or so, be it the
unemployment levels, unemployment data or be it the pmi data. euro-dollar flat to a little lower at the moment. let's show you the european markets. ibex just standing out. rest of the markets slightly lower across the board. slightly lower a day after the ecb decided not to do anything, not to insert more liquidity into the markets or hint of doing it. and of course what we're doing now is looking ahead to the jobs report. but what are the futures telling us ahead of that? >> and we are looking at a low are picture in terms of the u.s. futures here you can as well of course ahead of jobs friday which is the key today. do want to highlight yesterday stocks finishing in the red with the s&p falling below 1400, the nasdaq having its worth day in three weeks. this after we saw the weak ism nonmanufacturing report out and again as investors remained
cautious ahead of today's report. that april u.s. jobs report comes out at 8:30 a.m. eastern time, expected to show that hiring picked up a bit last month. forecasts calling for an increase of 168,000 in nonfarm payrolls versus 120,000 in march. unemployment is expected to hold steady at 8.2%. average hourly earnings are forecast to rise about 0.2%. facebook could raise as much as 13.58 billion. shares expected to price on may 17th and trade on the nasdaq on the 18th. start dag, management will visit with their lead underwriters to teach them thousand sell the brand. the road show starts monday in
new york and will hit boston, baltimore, the mideast with and california. facebook has posted its road show material in and online video. the company says that mobile is a key area for growth. mark zuckerberg also says he wants to keep facebook free for everyone. linkedin is raising its full year rev new outlook. they've reached a deal to buy slide share for $119 million. it lets professionals upload presentations on the internet to share with others. linkedin rose 8% in the after hours session. also yahoo! admitting that it made an error in what it posted about the background of new ceo scott thompson. his resume says he got a degree in accounting and computer science from stone hill college in 1979. but it turns out that stone hill didn't offer computer science
classes until 1981. and degrees until 1983. the error was pointed out by hedge fund manager dan lobe who has been fighting to nominate his own slate of direct tours to yahoo!'s board. yahoo! says it stands by thompson. taking a look at shares, just slightly above the flat line at 11.71. and walmart is being sued by cal strs, the second largest public pension fund over the and he alsos that it paid bribes to officials in mexico. defendants maimed emaim named wright. cal strs holds more than 5.3 million walmart shares. the retailer says it's reviewing the lawsuit. walmart shares trading slightly lower at 44.83. and coming up on worldwide can change, we are live in paris as
lower open at this point. the dow could be lower by 28 1/2, the s&p 500 by 4 and a quarter. after we saw red on thursday, as well, with the s&p falling below 1400, nasdaq having it worst day in three weeks, as well. after we saw the weak ism nonmanufacturing number as well as some concern before today's jobs report of course keeping investors on the cautious side of things. how are things in europe? >> we're looking a little bit on the red side. i can't lie. it would be very hard. we did take a little leg down into our close yesterday on the back of the data that you just mentioned and came we've taken a little bit more of a leg down on the back of our own data. retail sales data coming through much better than anticipated, but before that, we were also looking hedata. it seems like we're manufacturing on the services and manufacturing sector because that comprises the vast majority of the economy. stoxx 600 lower by 0.8%.
probably also a little bit of a wait and see mode taking place now ahead of the nonfarm payroll data as you mentioned as well, ftse 100 down by 0.8%. rbs bucking the trend. higher by 3% now. we've had an update from them on a first quarter basis, their operating profits coming in much better than expected, 1.2 billion pound sterling. they say they're making excellent progress in removing the mistakes from the past. government had to help them out. and they're well on track to try to unwind some of the state holding. the spanish market higher by a percentage point or so. and let's show you the bond market. ten year italian bond yielding almost 5.5%.
ten year bund pointing a little higher, 1.6%. the currency markets, forex rates, we're seeing relatively unmoved instances across the board. euro-dollar relatively flat, 1.3133. how about asia? >> quite a bit of risk aversion, cautiousness kicking in as reflected in your markets, as well. what will happen to the nonfarm payrolls is one thing on investors minds plus the headlines that keep on coming out of beijing, as well. there could be a juicy bone for the likes of goldman sachs and morgan stanley to chew on given that they have joint venture brokerage stake mis chis in chi. there is talk that it will be upped to 49%. it is something that they will probably eagerly jump on. also talk that the joint venture brokerages will be a able to trade commodities and pnks futures.
all of these really fall in line with a wave of reform measures that the chinese are trying to undertake. so quite a bit of headlines. it will happen within this hour. >> and the u.s. april jobs report is out at 8:30 a.m. eastern time expected to show that hiring picked up a bit last month. forecast calling for an increase of 168,000 in nonfarm payrolls. private payrolls seen growing by 175,000. paced by the manufacturing sector. unemployment expected to stay steady. joining us is joe wisenthal. let's talk about the jobs numbers. looking like it's a little bit better than it was last month, but at the same time, not great.
if we do get that 160,000 number, do you think that that is enough to sort of encourage the market? >> as i said, 162,000 would be better than last month, but still a deceleration from where we were in january and february when it looked like 200,000 plus would be something we might start seeing regularly. 160,000 is probably a neutral number. that's kind of at the low end of what bernanke says is kind of acceptable job growth. that's really muddling through. anything less and then you actually start talking about maybe the fed will have to do more. >> if we are in fact decelerating, do you think they'll step up and announce further quantitative easing soon? >> it's a really tough call. the last fed announce chlt, everyone thought qe-3 was dead.
>> never dead until it's really dead. >> exactly. and this jobs report, it's not clear whether it will affect the fed a lot, but certainly traders will think it will and they'll try to war game it out. 160,000 number is probably just at the edge of what's acceptable. >> this is louisa in london. i've been wondering, what is the norm these days in terms of the payroll anything is this it's not like we're looking at growth of 28,000 jobs. shouldn't we be happy about 100,000 or what's needed? >> the hope is that you start getting numbers that are 200, 250 plus in a solid recovery we would be getting those numbers steadily.
we look like we have a break out and then we get a month like last month and water right back to where we were with just 120,000. right now we're just at the edge of what's accepting. the unemployment rate has been edging down, but not fast enough. if we stay these number, they'll probably say about where it is. so we're definitely below where we would like to be in any recovery. unemployment is still way too hi high. >> joe, thank you very much. you're with us for the rest of the hour. in the meantime, though, just bringing it back to the election story as that is center stage here in europe, the greek elections kicking off on sunday. this is the latest read taken shortly before the election blackout on april the 20th. so what you have are the two main parties in the middle
there. new democracy, he's against the coalition. he voted against the first bailout, as well. thei socialist leader also know as his ex-position as a finance minister and he's looking to potentially extend the bailout. very messy and the issue is also who gets in on either side on the far left or the far right and whether or not you'll have to look at a restructuring of the greek debt deal that has already been agreed. that will get very complicated. in france sarkozy is gaining some ground, however hollande remains firmly in the lead with polls placing him six points ahead. stefane is in paris. you were saying it's looking
difficult according to the polls to assume that sarkozy will be able to come out on top. >> and the i've selected two newspaper which is i believe are summarizing the situation on this last day of campaign in france. the first one is this latest opinion poll. getting closer. sarkozy is closing the gap but still as you can see 47.5% for sarkozy, 55.2 for hollande. clearly sarkozy is not in a position to win this election. the second newspaper, quoting what the hollande said yesterday. the line chosen by sarkozy is in contradiction with our values. the values of the social right
clearly mentioning the position that sarkozy adopted after the first round. decided to speak to the voters on the extreme right and that's why he's lost the support of the centrist leader. it looks like hollande will win the election. of course it's not done yet, but the question is what consequences for the business community. there is concern about the pension reform that sarkozy implemented some these years ago, but overall feeling is that hollande has softened his position especially on the financial sector and the banking regulation. and after given all the promises that sarkozy made five years ago, hollande might not be the worst solution.
that's what i've heard on the ground in the last couple of days. chloe, back to you. >> it's getting juicier and juicier as we get closer to that vote. thank you so much. and coming up next, u.s. officials say china is making positive head way in its goal to liberalize the markets. but is anyone listening? more on that. plus the very latest with emily chan live out of beijing.
dialogue is wrapping up in beijing with some mixed messages. wen has asked hillary clinton to respect the differences between the two countries, but overall, wen stressed that the two day dial lock has been highly productive. hillary clinton says their relationship has never been stronger and in the past hour we've had quite a few developments coming out of beijing especially with regards on what to do with the financial sector. emily chan has been following these develops. what do you think? >> of course things are winding down here in beijing after the fourth strategic and economic dialogue.
in about ten minutes, we're expecting a joint statement to be issued. so about half past the hour. and then one hour after that, the u.s. side, geithner as well as clinton will be holding a press conference at the marriott hotel. but latest developments, we did get comments from a senior u.s. official saying china was willing to to make soes pay market rate dividends similar to that of internationally listed companies. they're also going to be agreeing to let foreign investors on 49% of domestic securities up from the current 33%. foreign brokerages can trade commodities and as well as financial futures. this is an attempt to strengthen the capital markets. names already invested in lore brokerages include credit suisse, goldman sachs, ubs, morgan stanley, they're all
here. so of course they are set to benefit from this latest reform measure. they say they will be active in promoting market openness and we did have the chinese markets close higher by half a percent and market talk was the positiveness coming from policy hopes. so the news having a positive effect on the chinese markets. we've also been following up on the latest of the chen guangcheng the blind dissident that says he's in great danger. currently still in hospital, but late last night, he phoned into a u.s. congressional hearing from his hospital bed saying that he wanted second of state hillary clinton's help. back to you. >> let's also get perspective from chris johnson.
you like many others expected the outcome of the sned to be rather tempered, but judging from a number of flashes that we've been getting, it really seems like we are seeing more significant head way than we ever have in this sort of dialogue. what do you think? they're talking about opening up more of its financial sector, the bond markets, what do you think? take us through. >> i definitely think that there has been tremendous progress on the economic front overnight or 59 least overnight for me during the day there. it is quite clear that the decision to open the joints venture security holding will be welcome by markets and the decision to start limiting the roeflt state owned enterprises
suggests we may be seeing another wave of economic reform that we haven't seen since the late 1990s. >> chris, definitely sounds like we're making progress in terms of the talks that we've seen, but a couple of key issues still remain on the table that emily didn't address in terms of the talks, as well. obviously chinese currency still remaining a big issue in the eyes of the u.s. as well as the theft of u.s. technology and intellectual property. so looking at technology issues, as well. your take on those issues and how we'll move forward in terms of dealing with them with china. >> i think the currency issue is the primary one and has been for several years now. obviously who are work to be done, but the chinese continue to signal that they're willing to continue widening the band. obviously they're doing a lot of this for their own purposes, as well, as they seek to slow down their own economy. but with the growth figure only
being 8.#% in the first quarter this year, i think the sense in china of course is that perhaps the economy is slow slowing faster than they might otherwise like. so we might see some roll back there. in terms of the ipr protection issue, another huge issue. it's been important that it was raised again this year in the talks. i think the chinese are starting to get the message that u.s. business is upset about this and i think we'll see steps to address the issue. >> could you characterize the state of the relations some alongside the sned, we did have the unfolding developing story with chen. how will both sides be resolving this issue? >> i think the news that you just reported is very encouraging this morning that it looks like we have a way out of this crisis and i think that's a fantastic development overnight. things did not look that good yesterday and today it appears that the chinese government presumably at a very high level
has decided to emphasize stability in the relationship. and allow mr. pl chen to leave china under the sort of face saving agreement that he'll be allowed to study abroad. obviously he's still saying that he doesn't necessarily want to seek political asylum in the united states, but i think it's very unlikely that we'll see him go back. so i'd say we very much overted a very dangerous situation in the relationship here through the great work of our diplomats and some compromising on the chinese side. >> of course this is also a year of leadership change for both the united states as well as china. any concerns on your part that the successors will be able to carry through all of the consensus and the outcomes of the last two days? >> obviously on the chinese side, that accept if a sis emphs is important and all the signals that they are sending so far
thoo they will carry through with the reforms. and in fact may open up a new era of reform here with the recent collapse of the senior party official, that sort of left the party taking a hit and reformers have a chance to make a difference. but during trance circumstance leadership tends to be conservative. so i think we can see them emphasize stability and perhaps a new wave of reforms after they take take office. >> all right. we'll have to leave it there. thanks so much to chris johnson at csis and to emily chan, as well. meantime coming up on the show, more on today's u.s. jobs report. our next guest expecting employers added more jobs last month than the consensus forecast as the public sector stabilizes. but he doesn't believe it that's going to help bring down the unemployment rate. we'll bring down his predictions coming up straight ahead.
president with nicolas sarkozy narrowing the gap with hollande. and in greece expected to hit hard at the polls amid anger over the austerity drive. >> and facebook sets the price range for it upcoming ip on which and gets ready to try convince investors to like the deal. >> nice to have you here. if you're just joining us, let's take a look at the u.s. futures and see how we're setting up for trade. we're a little cautious in terms of of the markets ahead of the jobs report. if the markets were to open now, the dow would be lower by 21 1/2, s&p by 3. and this after we saw red as well yesterday. the s&p falling below 1400. the nasdaq having its worth day in three weeks. the dow down by nearly 62 points. in terms of the laggards on the dow, hp and bank of america. on the s&p and the sectors
energy and materials leading the way lower. sf >> retail data was a lot stronger, but still not seeing a reaction filtering in to the markets. so weaker than anticipated data on the services side of things earlier on. but by and large, it's probably the wait and see mode ahead of the nonfarm payroll. >> and that april u.s. jobs report is out at 8:30 a.m. eastern time. all eyes on that. forecast calling for an increase of 160,000 in nonfarm payrolls. private payrolls are seen grown by 175,000. unemployment is expected to hold steady at 8.2%, and average hourly earnings forecast to rise by 0.2%. patrick o'keefe is joining us.
you're looking for things to be a little bit better than others are expecting. tell me why. >> i think when you look at all of the data, the mosaic, we probably have a very low reading in will march. ism forecast, the surveys of purchasing managers. most recent there's a mixed picture. a lot of people are reegd the unemployment insurance data as having gone up in april as being an indication it was a slow down. historically, april has been a contrary indicator and when claims grow up, it's usually a year in which employment is growing. >> and even if we do have a better number than expected, you were saying around 200,000. is that enough to impact the unemployment rate? >> 200,000 keeps us at a steady state situation. we'd be adding enough jobs to keep up with the growth in the
work age population. but not enough to really make a dent in the large number of unprovide employed,s can cour d workers. >> where are we seeing the growth? >> i think what we've seen in this recovery, the jobs recovery began in march 2010, is that it's been very broad, but very shallow with a couple of industries really dominating the growth. those are temporary employment, more than 10 respect about of all the job growth during the recovery. extraction industries like mining, lumber, that's 0.6%, but it's accounted for 4% of all the job growth during the recovery. and then professional and techy services. those three account for about 9 the% of all jobs prior to the recession. they've accounted for more than 25% of the jobs recovery in the
past 18 months. >> joe, i was speaking to somebody the other day and a viewer was challenging me saying write into google and say i want to buy in your various countries and see what comes up. >> people said if they want to buy shares urks it means the retail investor is back in the market which means we should get out. do you agree with this notion, do you think the retail investor is in the market now? >> that's actually funny because it's one of these clichés that you hear and the retail invest store back in and that must mean it's a sign at the top. there's actually plenty of evidence that it's the other way. i've seen data that shows when institutional investors have gotten bullish and have moved toward riskier assets, that that's the sign of the top.
so people are always looking for contrarian indicators. in general it does seem as though outside of more passive investments that there's just still this general lack of interest in the stock market by many investors. and who can blame them. what companies -- people get obsessed over apple, but you almost hear no discussion of other companies beyond that. so i don't know. i wouldn't get too worried about what google says. though i'm very excited to try that now and see what comes up in the u.s. >> tweet me and let me know what comes up. i'd love to know, as well. but patrick, looking at the data, do you agree with a previous guest that this year will be better than what we saw last year even though we've started off on exactly the same note? >> it's difficult not to be better than the past two years unless we ship back into recession. and i don't think might be sees that this year.
the overall performance of the jobs market this year is becoming somewhat similar to what we've seen in the past two years. which is we started off in the winter months early part of of the year with some pretty solid growth. and then we had a spring slowdown. the march data i think caused a lot of us to think about what we've seen the past two years. i do think 2012 will be a better year, but that's not saying a lot. >> patpatrick, ultimately maybe this year will be better than last year given we have quite a bit of progress from the u.s. and chinese dialogue. china potentially could have the purchasing power to import as much as $8 trillion in the next five years. what will that mean in terms of how the global economy progresses along? >> for china to become a major source of domestic demand and
increase the exports from countries such as ours would be a major positive long term factor. in fact one of the superstars from this recovery has been the manufacturing sector. we've added over half a million manufacturing jobs during the jobs recovery and that's really helped to propel us forward. >> all right. patrick, thank you so much for joining us. we appreciate your time. patrick o'keefe, jh cohen. louisa, over to you. >> let's get back to greece because greece's main parties, both expected to take a big hit at this weekend's elections. we have widespread discontent about austerity measures of course taking place. analysts expect smaller protest parties to gain ground.
at the same time in france sarkozy is gaining some ground against hole rand oig. according to the latest poll, sarkozy has managed to narrow the gap with hollande by a total of four points. six separate surveys conducted since wednesday have shown now that sarkozy gradually gaining ground about, hollande remains firmly in the lead. stefane has been looking at what to anticipate ahead of the elections and he sends us this report. >> we're back in paris for this will special edition of focusing on the france elections. this small village was only 1006 inhabitants became a test. decided to come to the political base. both are aware they lack the numbers to win. i tried to be here like a
traditional french person. which benefit from sarkozy win and which to a hollande win? this is tough reporting. nothing is ever impossible. smell garlic? >> great piece from stefane. and coming up next, it's been said that a picture is worth 1,000 words. for our next guest, its he all about picture and video. we'll talk to the ceo of brightcufbrigh brightcove.
and then treats day after day... well, shoot, that's like checking on your burgers after they're burnt! [ male announcer ] treat your frequent heartburn by blocking the acid with prilosec otc. and don't get heartburn in the first place! [ male announcer ] one pill a day. 24 hours. zero heartburn. a lot of people buzzing about facebook planning to price shares at $28 to $35 each. that would value the social networking company up to $96 bui billion. shares are expected to price on may 17th and trade on the nasdaq on the 18th. starting today, management is going to visit with the lead underwriters. this includes goldman, jpmorgan and morgan stanley to teach them how to sell the facebook brand.
the road show starting on monday with a lunch in new york also making stops in other states ending up in california. facebook has posted it road show material in and online video, the company saying mobile is a key area for growth and mark zuckerberg saying he wants to keep facebook free for everyone. also looking at a company called brightcove. revenues rose 53% for brightcove and it's a leading provider of cloud services helping companies publish of course and distribute video and other digital kept. joining us is the ceo. great to have you with us, jeremy. so it was a good first quarter report for the company. what were the strongest pieces and the strongest take away a oig for investors coming out of this earnings report?
>> we drew our customer base almost 50% year over year and that was from almost every sector of society. it was financial institutions, media institutions, government institutions. and what i think it's showing and this is a core part of our belief is that virtually every professional institution on the planet is going to begin to use more and more video as how they market and a educate and interact with their users. good and also we've seen a run up in the share price, seeing a nice clip of an increase this. some wondering if that is just fiz at this point. your thoughts on that. >> i can't comment specifically on the stock price.
last year we grew 46% we're a company that i think is participating in some fundamental secular market trends like online video, cloud computing, mobile kept, social media and i think those are attractive market segments and drivers. and our business is very much at the center of all of those. and so we're an interesting company with a solid growth profile and diverse customer base and very sizable addressable market. >> this is what would is louisa. are you primarily looking at content in one area versus another meaning certain devices or is it across the board is this because the mobile phone market is kind of slowing down.
>> right. video is where we started with our new app cloud product, we allow people to publish any kind of content and data and distribute those as apps on to these consumer devices. right now that new product is focused on the smart phone and be tablet market. so organizations that have content and data that they want to easily publish to phones and tablets, that's the focus there. and the number of apps and the usage of those apps on those platforms is growing at a staggering rate. and so we're trying to help participate in that, help organizations participate in that phenomenon. and reach these users with whatever kind of content they have on these new consumer devices. >> i'm curious if what you're seeing in one these big discussions we're having is these sort of ios versus android. i'm curious if you have any
interesting observations about video consumption uses on the two platforms. >> we're able to track a great deal about the usage patterns on these devices. and we're certainly i think like a lot of people seeing the amount of video consumption growing at nearly twice the rate as the consumption of other types of data. and that phenomenon is carrying over into the mobile space, into the handheld and tablet space. we're seeing that tablet computers particularly ipad is driving a great deal of video consumption, it's a really fantastic video condition slusu device. it's a way in which the device is used more and more to browse the web instead of using a personal computer. so the video consumption patterns are there. that's been a core focus of ours is to make sure that any piece of content can pray back in html 5, the tech knowledge that apa he will and others are promoting
for this kind of content. and we're seeing significant growth, triple digit growth in usage of video on these devices on an annualized basis. >> all right. thanks so much for that. thank you for coming on the program. and coming up next, we'll take a look at the trading day ahead on wall street as investors wait for the key april nonfarm payrolls data.
168,000 while unemployment expected to hold steady at 8.2%. a handful of companies are also reporting results today including he duke energy and th "washington post" before the opening bell. after the close, we'll hear from berkshire hathaway, holding its annual meeting in omaha will weekend. joe, on this friday morning as we're heading in to jobs friday, your final take on these numbers and what you're expecting the -- how you're expecting the markets to react. >> i'm curious whether good news is bad news and bad news is good news. in theory bad news means more easing a and therefore perhaps higher stock prices. i'm not a littlely sold that's actually the pattern. if we were to have a bad number, whether the market will react badly or people will see --
>> and we touched on it before. if we do get the bad number, do you think the fed will be aggressive and act right away? probably not. >> i don't think there's much question that they're shifting toward the hawkish side. bernanke has stuck to his line by b. not raising rates until 2014 and being on stand by to do more if necessary. but it doesn't seem like there's a lot of aptied at the fed to do more. so it might take something really bad to get more action. >> it's a key election here in the united states. if this unemployment rate stays at 8.2%, how does that bode for obama? >> it will be really tough. i think regardless it will be a
tough fight. if we still have the mediocre numbers all through the summer, it will be tough. if mitt romney can keep talking about the deficit, jobs and all that, obama won't have an easy argument to make. >> so an interesting road ahead. great to have you with us. that just about wraps it up for us. i'm jackie deangelis in the united states. >> and that's it for my end. i'm chloe cho here in asia. >> and i'm louisa bojesen in europe. have a fantastic weekend.
it's jobs friday. economists are looking for a better nonfarm payroll number than the previous month, but not as good as we have been getting before last month. and facebook hits the road. the company wants to wooen investors as it tries to raise more than $10 billion. great piece in the "journal" shows these guys have so much money. and berkshire hathaway faithful descending on omaha. becky is there. she brings us her conversation with warren buffett. it's friday, may 4th, 2012. "squawk box" begins right now.